5 minutes
Velera’s Eye on Payments Study
As 2025 quickly approaches, many credit union leaders are looking to the new year and what consumer trends, preferences and behaviors will impact their organizations.
While it is impossible to predict the future, Velera conducts an annual survey to gauge payments preferences across more than 1,850 U.S. credit union members and other financial institution (FI) customers. Through this annual research, Velera explores the factors that influence consumers when it comes to choice and usage of different payment methods, how these factors may vary among different life stages and economic events, and how credit unions can better serve their members and optimize their offerings to adapt to these evolving preferences and needs—both now and in the future.
Here are five key trends that Velera is monitoring as we wrap 2024 and enter 2025:
1. Credit Ranks as No. 1 Preferred Payment Method
The 2024 survey revealed a notable shift, with 37% of consumers now preferring credit as their top payment method—up from previous years. Additionally, 31% of consumers applied for a new credit card within the last 12 months, compared to 25% in 2023. This trend is even more pronounced among credit union members, 40% of whom sought a new credit card in 2024. That said, although there was a shift in overall preference, debit remains a close second with 35% of consumers reporting it as their preferred payment option.
2. Card Characteristics Influence Top of Wallet Decisions
With credit and debit cards being the top payment choices, the design and features of these cards have become increasingly important.
More than half of credit union members (55%) say that card design—ranging from type of card material (like metal) to whether it is produced sustainably, among other attributes—influences which card they choose to use, up from 39% in 2023. In addition, 79% of credit union members report they now a have contactless card, up from 58% in 2021. When asked how they prefer to conduct a transaction at the point-of-sale with a card, the majority of credit union members (68%) would like to tap-and-go using a contactless card, mobile wallet or wearable. This is up from 52% in 2023. Those that would prefer to insert their EMV chip into a point-of-sale device declined from 38% in 2023 to just 26% in 2024.
3. Mobile Wallet Usage Continues to Increase
Half of credit union members (50%) report they use a mobile wallet at least a few times per month, up from 34% in 2023 and 27% in 2022. In fact, the number of credit union members who never use the technology took a sharp dive—down to 35% from 57% in 2022. At the same time, the number of those who use their mobile wallet at least a few times per week rose 11 percentage points since 2023. This trend is coupled with 31% of credit union members reporting they used a mobile wallet at the point of sale in the past 60 days, while nearly six in 10 (59%) claim they are likely to use a mobile wallet in the next six months. This likelihood has nearly doubled compared to the 35% of credit union members that reported they were likely to use a mobile wallet in the next six months in 2022.
4. Safety and Security Are Key
Security has reemerged as a top concern, with 83% of credit union members reporting they are worried about identity theft—which is understandable given fraud has been on the rise since 2021. This year, 10% of credit union members experienced identity theft, and 14% were victims of card fraud, up from 4% and 8% in 2021, respectively. Most card fraud incidents (75%) occurred online. This year, eight in 10 (82%) credit union members report they make a decision about how to pay for something based on which is the most secure, up from 73% in 2023.
5. P2P Payment Accounts Are Go-To Methods
The number of credit union members who report using a peer-to-peer (P2P) account as their primary payment method has risen from 12% in 2023 to 25% in 2024. Overall use of accounts like Venmo and Zelle has increased by 21% among credit union members since 2021. This is coupled with a decline in credit union members reporting that they do not use a P2P offering at all, decreasing in recent years from 39% in 2021 to 26% this year. Those that use a P2P payment account reported increased frequency when comparing their usage year over year, as well. Sixty-one percent (61%) of credit union members say they used a P2P offering one to three times in May 2024, compared to just 48% of credit union members using it the same amount in May 2023.
Key Takeaways
It’s clear that for credit unions to maintain growth and achieve success, they must strive to have their members using credit union-issued payments methods in every scenario. Dominating the overall payments game will be critical for credit unions to achieve or maintain top-of-wallet status, as members do not need to look any further for the payments they prefer, want or need. Gaining top-of-wallet status will be critical for credit unions to remain competitive and meet member needs in the ever-evolving payments landscape.
View the full research study, including all key findings, takeaways and an overview of payments by generations.
In his role as Chief Marketing and Communications Officer, Tom Pierce is responsible for leading and executing Velera’s marketing and communications strategy, including brand development and sentiment, public relations, go-to-market strategy, market research and events. Pierce has successfully led marketing teams for more than 30 years, with the latter half of his career spent in the payments industry. Prior to joining Velera, Pierce served as Chief Marketing Officer for Cardtronics, the largest global ATM operator, and held senior marketing roles at FIS, Metavante and Wausau Financial Systems.
